US Indexes higher with sector trends more defensive. Pockets of performance in Gold, Uranium and Quantum computing

The US Indexes were all up on Thursday, for the first time this week. The VIX was flat at 17, this seems too low considering the recent market swings. The main indexes were; DJIA +1.06%, S&P 500 +0.53 and Nasdaq +0.03% (Mag7 -1.17%). On an equal weighted basis (our measure) the overall market was +1.21% yesterday. Breadth of 69% (daily range of 22% to 69% over the last 10 days) . Daily volumes of 10b (the average daily volume over the last year of 8b). 

Daily returns: Mag7 -1.2% (NVDA +0.5% all other Mag7 down AMZN -2.2%, GOOGL -4.7%), large cap +0.98%, medium cap +1.5%, small cap +1.36% and micro cap +1.11%.

Week returns as follows - equal weight basis: Market +0.3%, Mag7 -1% (TSLA +9.2%, AAPL +0.1%, GOOGL -4.5%, AMZN -6.2%), large cap +1.4%, medium cap, +1.8%, small cap +0.5% and micro cap -0.5%. 

Our risk monitor remains in favour of the larger cap stock. Micro caps have underperformed the market by 0.6% over the two weeks - it has fallen from a peak of 1.6% a week ago.

Technology was the best performing sector again yesterday. Computer Hardware +4.9%, Household Electronics +3.5% (Black Friday effect?) Semicon +2.5%, Fintech paused for breath and was -1.1% and within this Blockchain was -3.1%. Lithium +3.1%, Gold +2.5% and Silver +1.5% and Diversified Chemicals +2.6% helped Basic Materials higher to beat the market yesterday. Consumer Cyclicals outperformed with Appliances +3.3% (Black Friday effect?), Recreation +2.2% led by Peloton +8.4%, Toys & Children Products +2.1%. Industrials +1.35% was helped by Machinery, Tools & Heavy Equipment +2%, Aerospace & Defence +1.7% and Construction +1.8%. Utilities outperformed the market helped by Natural Gas +2.2% and Independent Electric Energy +1.9%. Healthcare rose on the day +0.5% but lagged the wider market. Uranium was +3.4% was not enough to offset Renewable Energy +0.4% resulting in Energy underperforming the market.

A notable number of 52 week highs was seen in the following sectors: Consumer Cyclicals (across there sector but Hotels and Media & Publishing very strong), Energy (Oil & Gas Equipment) , Financials particularly Banking & Investment Services. Industrials was strong again (across the sector) and Technology very strong (Software & IT Services, Technology Equipment), Utilities (across the sector ex Water).

Notable high volumes in all sector: High levels in Basic Materials (Metals & Mining) Consumer Cyclicals (across the sector), Financials (across the sector), Healthcare (across the sector), Industrials (across the sector) and Technology saw a very high number (Software & IT Services, FinTech and Technology Equipment)